1 No-Brainer Growth ETF to Buy Right Now for Less Than $1,000

If you have $1,000 to invest in growth stocks, you could buy a few shares of Nvidia, one share of Micron Technology, or a fractional share of Sandisk. Or you could invest in an exchange-traded fund (ETF) that tracks growth stocks within an index, like the S&P 500.

A better idea right now, given the number of inflated stock valuations, economic uncertainty, and market volatility, is the MarketDesk Focused U.S. Momentum ETF (NASDAQ: FMTM). The MarketDesk Focused U.S. Momentum ETF is a growth ETF, but it focuses on stocks of stable companies with growth momentum and upward price movement.

The ETF is so inexpensive that you could buy roughly 25 shares with a $1,000 investment. I invest in this ETF, which speaks to my conviction in it. Hereʻs why I think itʻs a no-brainer growth ETF to buy right now.

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Growth ETF with momentum

The MarketDesk Focused U.S. Momentum ETF deploys a quantitative strategy that uses price data from the last six months and advanced mathematics to identify stocks with the highest relative momentum.

The ETF considers the universe of stocks with market caps exceeding $1 billion and then removes those that don't meet certain liquidity filters. Then those stocks go through quality screens that assess profitability, operating efficiency, and balance sheet quality. Then those stocks are ranked for their upward price movement over the previous six months.

These screens create a basket of 30 to 50 stocks with stable, consistent momentum. The stocks are equal-weighted to ensure greater diversification. Also, the portfolio is rebalanced monthly, so the ETF will consistently hold stocks with strong forward momentum under any market conditions.

Some of the current holdings include Astera Labs, Snowflake, CrowdStrike, and Marvell Technology.

Crushing the Nasdaq and other growth ETFs

The ETF has delivered this year, which is a pretty good test case for growth stocks given how volatile markets have been. The MarketDesk Focused U.S. Momentum ETF is up 21% year-to-date and 45% over the past year, which easily beats the Nasdaq, up 14% year-to-date and 25% over 12 months, and the S&P 500, up 13% year-to-date and 22% over the past year.

But it also beats the various large- and mid-cap growth ETFs that track the major indexes. For example, the iShares S&P 500 Growth ETF (NYSEMKT: IVW), which invests in growth stocks within the S&P 500, is up 14% year-to-date, and the iShares Russell Mid-Cap Growth ETF (NYSEMKT: IWP) is only up 4% year-to-date.

Further, the ETF trades at around $39 per share, meaning you could buy 25 shares for $1,000. I think the MarketDesk Focused U.S. Momentum ETF is one of the best growth ETFs out there. Based on its market-beating performance, it's a no-brainer buy in this volatile and uncertain market for growth stocks and ETFs.

Dave Kovaleski has positions in Ea Series Trust - MarketDesk Focused U.s. Momentum ETF and Micron Technology. The Motley Fool has positions in and recommends CrowdStrike, Marvell Technology, Micron Technology, Nvidia, and Snowflake. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.